Renminbi CD first for ICBC

The New York Branch of Industrial and Commercial Bank of China (ICBC) has issued a RMB 500 million 31-day certificate of deposit which will be settled in the US, the first to do so; BNY Mellon Corporate Trust is Issuing Agent with the DTCC (Depository Trust and Clearing Corporation).

The Working Group on US RMB Trading and Clearing aims to evaluate opportunities to develop and expand the trading, clearing and settlement of RMB in the United States. The Group is chaired by Michael R Bloomberg, with Mary Schapiro serving as vice chair and Thomas J Donohue, Timothy F Geithner and Henry M Paulson, Jr serving as co-chairs. ICBC, DTCC and BNY Mellon are members of the Working Group.

“The launch represents a significant milestone in serving to meet the growing demands among investors in the United States and around the world to have access to the RMB,” said ICBC chairman Jiang Jianqing. “The RMB is an increasingly important part of the global payments system, as payments in this currency are growing faster than overall global payments in all currencies.”

”I’m pleased to see members of the Working Group taking this concrete step to further develop RMB markets in the United States,” said Bloomberg. “I’m confident this will be the first of many developments to come.”

The value of RMB payments increased 18.46 percent from February 2016 to March 2016, compared with a 10.67 percent increase in all payments currencies during the same period, according to SWIFT. In March, SWIFT reported that the RMB was the fifth most active currency for global payments by value with a share of 1.88 percent, a slight increase from 1.74 percent in February 2016.